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Difference Between NCFM and CFA
NCFM is the abbreviation for NSE Certification in Financial Market. It is organized by NSE (National Stock Exchange), India, to train students on equity research, mutual funds, financial markets, currency derivatives, and capital markets. In comparison, CFA is the abbreviation for Chartered Financial Analyst offered by CFA Institute, USA, to equip candidates in asset valuation, investment tools, portfolio management, etc.
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NCFM vs CFA Infographics
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Let us understand the difference between these two streams with the help of the NCFM vs. CFA® infographics.
NCFM vs CFA - Comparative Table
| Section | NCFM | CFA | |
|---|---|---|---|
| Organizing body | The National Stock Exchange of India Ltd. (NSE), India, controls and manages the NCFM exams. | The CFA Institute, USA, controls and manages the CFA exams. | |
| Pattern | The course is divided into three modules: -
| The course is divided into three levels: -
| |
| Duration of the course | No mandatory time limit. However, the time taken by candidates to complete each module varies from a few weeks to one month. | If candidates can clear all the exams on their first attempt, they can complete the course in 4 years. | |
| Syllabus | The syllabus revolves around:-
| The syllabus revolves around
| |
| Exam fees | The overall expenditure of the total 48 sub-modules lies in the range of $1,500 to $1,700, including the exam fees and taxes. The expense of most of the sub-modules is around $30. | The course’s overall expenditure lies in the range of $2,550 to $3,450, including an enrollment fee of $450 and the remaining exam fees that may vary depending on the time of registration. | |
| Jobs | Some of the common profiles include:-
| Some of the common profiles include:-
| |
| Difficulty | The passing criterion is 50% - 60% for most exams and candidate feedback suggests that the exams are much easier. However, there is no information available about the success rate of the candidates. | The difficulty level is very high. For example, during June 2019, the pass rates for Level I, Level II, and Level III were 41%, 44%, and 56%, respectively. | |
| Exam date | The exams are conducted online on all working days. | The schedule for the forthcoming exams during the year 2022: -
|
What is NSE's Certification in Financial Markets (NCFM)?
The NCFM is a certification program for individuals who desire to learn the fundamentals of the capital markets to make their career in India’s financial markets. According to the industry’s regulations, a certified course is necessary if one is keen to participate in the financial markets. The program provides a basic understanding of the concepts related to the different sections of the investment segment, the primary and the secondary markets, the derivatives market, and the financial statement analysis. In addition, the course comprises theory and practical application lessons with a wide range of perspectives. The NCFM program training is conducted by the in-house faculty of reliance Leap /IDBI INteq / PIFM/. The qualified candidates require about 30 hours of intervention before giving an online test of the National Stock Exchange and getting the NCFM certificate.
What is the Chartered Financial Analyst® (CFA) charter?
The CFA® Program focuses on investment management. The top employers of shareholders include the most respected financial corporations globally, e.g., JPMorgan, Citigroup, Bank of America, Credit Suisse, Deutsche Bank, HSBC, UBS, and Wells Fargo, to name a few.
Many of these are investment banks, but the CFA® Program focuses on the knowledge and skills most relevant to the global investment management profession from a practitioner’s standpoint.
Investment professionals who hold the CFA® designation (or CFA® charter) meet rigorous educational, work experience, and ethical conduct requirements.
Only those who complete three graduate-level examinations, four years of work experience, and annual membership renewal (including ethics and code of professional conduct attestation) are permitted to use the CFA® designation. In addition, complementary codes and standards (such as the Global Investment Performance Standards and Asset Manager Code) help enhance this professional distinction.
NCFM vs CFA Exam Requirements
NCFM-
No specific age or qualification is required for taking the certification examination. However, computer literacy will be advantageous, considering the test is completely online-based. The following persons are eligible to take the NCFM certification examination:
1. All approved users and sales personnel of recognized stock exchanges trading members.
2. Interested students/professionals
3. Any other individuals
Once registered in the NCFM program, a candidate can take as many modules and several attempts as desired by paying the enrollment fees for every effort.
CFA®-
To qualify for the CFA® program, a candidate must have a bachelor’s (or equivalent) degree or be in the final year of his bachelor’s degree program (an update is required on attaining the degree to qualify for the Level II) or a minimum of four years of professional experience. The CFA® certificate is only awarded after a candidate achieves four years of experience, even after clearing the exam.
Why pursue NCFM?
The NCFM is considered a minimum benchmark course for serious individuals pursuing their careers in the financial industry. Employers ensure that the candidates who apply for jobs relevant to them have passed out of the NCFM program. It provides basic knowledge and understanding of the financial markets. The NCFM is a straightforward exam to be clear and cost-effective; achieving it only adds merit to the resume. The certificate also depicts the candidate’s keenness to lap information and knowledge related to their field despite not favoring employers, unlike the reputed certificate programs like CFA® and FRM.
Why pursue the CFA designation?
The differentiating benefits of earning the CFA® designation include: -
- Real-world expertise
- Career recognition
- Ethical grounding
- Global community
- Employer demand
The sheer demand for the CFA® charter shows the difference. More than 2,45,000 global candidates registered for the June 2020 CFA® exams scheduled to be held in 193 cities across 95 different countries.
For more information, refer to CFA® Programs.
Conclusion
The NCFM vs. CFA educational program and module help a candidate develop his aptitude according to the industry’s current practice. Achieving the certificate requires rigorous studying and hard work and, therefore, a chance to loom in the eyes of your employer. Your practical skills would be an asset, provide you with a competitive edge, and boost the possibility of a hike in the future.
Both NCFM is more about financial markets, whereas CFA® gives you a good grounding base about the investment industry. Choose your interest wisely! All the Best.
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